As the craze for meme coins wanes, it is very likely that we will see a further drop in the price of WIF.
Dogwifhat (WIF) Investors Retract
The price of WIF has fallen more than 45% in the past three weeks and is currently trading at $2.1. The change in sentiment towards meme coins has had a negative impact on Dogwifhat and other tokens of its type.
First, despite occasional signs of slowing bearish momentum, the Moving Average Convergence Divergence (MACD) indicator continues to signal a bearish crossover for the WIF. This crossover suggests that the downtrend may persist, indicating further downside potential for the asset.
The bearish crossover in the MACD is a key technical signal that often prompts investors to be cautious. It indicates that the short-term momentum is below the long-term trend, thus reinforcing the bearish outlook for WIF. Traders and investors monitor this technical indicator closely, as it can often portend further price declines.
Investors are abandoning the token, in response to the numerous bearish signals perceived. Over the past three days, there has been a notable flow of outflows. At the same time, open interest decreased by $80 million, from $298 million to $216 million. This considerable reduction in open interest reflects a lack of confidence in WIF.
The decline in open interest, coupled with the bearish MACD crossover, attests to a predominant negative sentiment towards Dogwifhat. Moreover, while the same coins are at half mast, AI cryptos could reopen a nice positive trend.
Find out more: here are 10 meme coins to watch in 2024.
Price prediction: the chances of going down are high
Even though the WIF has currently recorded a positive rebound of 4%, it is very likely that a further decline will follow. Due to the bearish sentiment that predominates among investors, the same coin could fall back to $2 or even $1.8 soon.
Currently, the crypto asset is observing a three-month low. If skepticism among WIF holders continues to grow, the cryptocurrency could even, in a worst-case scenario, slip to trade at $1.5.
Learn more: what is a meme coin?
On the other hand, if WIF price continues its upward trend, without falling below the $2.0 support, it could recover from its latest losses. If the humorous cryptocurrency breaks through the resistance at $2.3, it could allow for a further price increase. At that point, the bearish thesis would be completely invalidated.
Moral of the story: here’s hoping the WIF has more than one trick up his sleeve.
Disclaimer
Disclaimer: In accordance with The Trust Project guidelines, this price analysis article is intended for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to providing accurate and unbiased information, but market conditions may change without notice. Always do your own research and consult a professional before making any financial decisions.
